[Federal Register Volume 66, Number 162 (Tuesday, August 21, 2001)]
[Rules and Regulations]
[Pages 44006-44007]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-20942]



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Part III





Department of Education





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34 CFR Parts 674, 682, and 685



Federal Perkins Loan Program, Federal Family Education Loan (FFEL) 
Program, and William D. Ford Federal Direct Loan Program; Final Rule

  Federal Register / Vol. 66, No. 162 / Tuesday, August 21, 2001 / 
Rules and Regulations  

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DEPARTMENT OF EDUCATION

34 CFR Parts 674, 682, and 685


Federal Perkins Loan Program, Federal Family Education Loan 
(FFEL) Program, and William D. Ford Federal Direct Loan Program

AGENCY: Office of Postsecondary Education, Department of Education.

ACTION: Final regulations.

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SUMMARY: This document contains technical corrections and changes to 
the regulations for the Federal Perkins Loan Program, the Federal 
Family Education Loan (FFEL) Program, and the William D. Ford Federal 
Direct Loan (Direct Loan) Program. The regulations govern the Federal 
Perkins Loan Program, the Federal Stafford Loan Program, the Federal 
Supplemental Loans for Students (Federal SLS) Program, the Federal PLUS 
Program and the Federal Consolidation Loan Program, collectively 
referred to as the FFEL Program, and the Federal Direct Stafford Loan 
Program, the Federal Direct PLUS Loan Program, and the Federal Direct 
Consolidation Loan Program, collectively referred to as the Federal 
Direct Loan Program. These amendments are needed to correct technical 
errors and omissions, clarify language, and, where necessary, ensure 
consistency of language in the regulations of the three loan programs.

DATES: These regulations are effective August 21, 2001.

FOR FURTHER INFORMATION CONTACT: For the FFEL and Perkins Loan 
Programs, Mr. Brian Smith, or for the Direct Loan Program, Mr. Jon Utz; 
U.S. Department of Education, 400 Maryland Avenue, SW., Room 3045, 
Regional Office Building #3, Washington, DC 20202-5345. Telephone: 
(202) 708-8242.
    If you use a telecommunications device for the deaf (TDD), you may 
call the Federal Information Relay Service (FIRS) at 1-800-877-8339.
    Individuals with disabilities may obtain this document in an 
alternative format (e.g., Braille, large print, audiotape, or computer 
diskette) on request to one of the contact persons listed under FOR 
FURTHER INFORMATION CONTACT.

SUPPLEMENTARY INFORMATION: These corrections and changes incorporate 
technical corrections to the final regulations for the Perkins, FFEL, 
and Direct Loan programs published in the Federal Register on November 
1, 2000 (65 FR 65678), and to the existing Perkins and FFEL program 
regulations in 34 CFR parts 674 and 682.
    These technical corrections include conforming changes to 
Sec. 682.211, which we inadvertently omitted from the final regulations 
published on November 1, 2000. The changes correct an inconsistency 
between Sec. 682.402(b)(3) and Sec. 682.211 regarding the length of 
time a lender may suspend collection activity on a loan while obtaining 
documentation that the borrower (or student in the case of a PLUS loan) 
has died.

Waiver of Proposed Rulemaking and Negotiated Rulemaking

    Under the Administrative Procedure Act (5 U.S.C. 553) the 
Department generally offers interested parties the opportunity to 
comment on proposed regulations. However, these regulations merely 
reflect needed technical corrections to the Perkins, FFEL, and Direct 
Loan program regulations. These corrections and changes do not affect 
the substantive rights or obligations of individuals or institutions 
and do not affect substantive policy. Thus, the Secretary has concluded 
that these regulations are technical in nature and do not necessitate 
public comment. Therefore, under 5 U.S.C. 553(b)(B), the Secretary has 
determined that proposed regulations are unnecessary and contrary to 
the public interest. The Secretary also waives the 30-day delayed 
effective date under 5 U.S.C. 553(d)(3).
    For the same reasons, the Secretary has determined, under Section 
492(b)(2) of the Higher Education Act of 1965, as amended, that these 
regulations should not be subject to negotiated rulemaking.

Regulatory Flexibility Act Certification

    The Secretary certifies that these regulations will not have a 
significant economic impact on a substantial number of small entities. 
Small entities affected by these regulations are small institutions of 
higher education. These regulations also affect lenders and guaranty 
agencies that participate in the title IV, HEA programs, and individual 
loan borrowers, as described in the NPRM published on August 2, 2000 
(65 FR 47634). These regulations contain technical corrections to 
current regulations. The changes will not have a significant economic 
impact on any of the entities affected.

Paperwork Reduction Act of 1995

    These regulations do not contain any information collection 
requirements.

Assessment of Educational Impact

    Based on our own review, we have determined that these final 
regulations do not require transmission of information that any other 
agency or authority of the United States gathers or makes available.

Electronic Access to This Document

    You may view this document, as well as all other Department of 
Education documents published in the Federal Register, in text or Adobe 
Portable Document Format (PDF) on the Internet at the following site: 
www.ed.gov/legislation/FedRegister
    To use PDF you must have Adobe Acrobat Reader, which is available 
free at this site. If you have questions about using PDF, call the U.S. 
Government Printing Office (GPO), toll free, at 1-888-293-6498; or in 
the Washington, DC, area at (202) 512-1530.

    Note:  The official version of this document is the document 
published in the Federal Register. Free Internet access to the 
official edition of the Federal Register and the Code of Federal 
Regulations is available on GPO Access at: http://www.access.gpo.gov/nara/index.html

(Catalog of Federal Domestic Assistance Numbers: 84.032 Federal 
Family education Loan Program; 84.037 Federal Perkins Loan Program; 
and 84.268 William D. Ford Federal Direct Loan Program)

List of Subjects in 34 CFR Part 674

    Loan programs'education, Reporting and recordkeeping requirements, 
Student aid.

List of Subjects in 34 CFR Parts 682 and 685

    Administrative practice and procedure, Colleges and universities, 
Loan programs-education, Reporting and recordkeeping requirements, 
Student aid, Vocational education.

    Dated: August 15, 2001.
Maureen A. McLaughlin,
Deputy Assistant Secretary for Policy, Planning and Innovation, Office 
of Postsecondary Education.

    For the reasons discussed in the preamble, the Secretary amends 
title 34 of the Code of Federal Regulations parts 674, 682, and 685 as 
follows:

PART 674--FEDERAL PERKINS LOAN PROGRAM

    1. The authority citation for part 674 continues to read as 
follows:

    Authority: 20 U.S.C. 1087aa-1087ii and 20 U.S.C. 421-429, unless 
otherwise noted.


Sec. 674.9  [Amended]

    2. Section 674.9 is amended:
    A. In paragraph (h)(1), by removing the words ``previous loan was 
cancelled due to'' and adding, in their place, ``prior loan under title 
IV of the Act was discharged after a final determination of'; and by 
removing the words ``that the

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borrower's condition has improved and'; and by removing the word 
``and'' from the end of the paragraph.
    B. In paragraph (h)(2), by removing the word ``canceled'' and 
adding, in its place, ``discharged'; and by removing the period and 
adding, in its place, ``; and'.
    C. In paragraph (h)(3), by removing the word ``receives'' and 
adding, in its place, ``applies for'; and by adding, at the end of the 
paragraph, ``before receiving the new loan''.


Sec. 674.61  [Amended]

    3. Section 674.61 is amended:
    A. In paragraph (b), by removing ``(1)''.
    B. By removing paragraph (b)(2).

PART 682--FEDERAL FAMILY EDUCATION LOAN (FFEL) PROGRAM

    4. The authority citation for part 682 continues to read as 
follows:

    Authority: 20 U.S.C. 1071 to 1087-2, unless otherwise noted.


Sec. 682.201  [Amended]

    5. Section 682.201 is amended:
    A. In paragraph (a)(4)(ii), by removing the word ``paragraph'' and 
adding, in its place, ``section''.
    B. In paragraph (a)(6)(iii), by removing the word ``receives'' and 
adding in its place ``applies for''; and by adding, at the end of the 
paragraph, ``before receiving the new loan''.
    C. In paragraph (b)(1)(vi), by removing the words ``paragraphs 
(a)(4) and (a)(5)'' and adding, in their place, ``paragraphs (a)(4) and 
(a)(6), as applicable''.


Sec. 682.211  [Amended]

    6. Section 682.211 is amended:
    A. By revising paragraph (f)(5).
    B. By redesignating paragraphs (f)(6) through (f)(10) as (f)(7) 
through (f)(11), respectively.
    C. By adding a new paragraph (f)(6).
    D. In redesignated paragraph (f)(7), by adding the words ``an 
unpaid refund,'' before ``attendance at a closed school''.
    E. By adding a new paragraph (i)(6).
    The additions and revisions read as follows:


Sec. 682.211  Forbearance.

* * * * *
    (f) * * *
    (5) For the periods described in Sec. 682.402(c) in regard to the 
borrower's total and permanent disability;
    (6) For a period not to exceed an additional 60 days after the 
lender has suspended collection activity for the initial 60-day period 
required pursuant to Sec. 682.211(i)(6) and Sec. 682.402(b)(3), when 
the lender receives reliable information that the borrower (or student 
in the case of a PLUS loan) has died;
* * * * *
    (i) * * *
    (6) The lender shall grant a mandatory administrative forbearance 
to a borrower for a period not to exceed 60 days after the lender 
receives reliable information indicating that the borrower (or student 
in the case of a PLUS loan) has died, until the lender receives 
documentation of death pursuant to Sec. 682.402(b)(3).

PART 685--WILLIAM D. FORD FEDERAL DIRECT LOAN PROGRAM

    7. The authority citation for part 685 continues to read as 
follows:

    Authority: 20 U.S.C. 1087a et seq., unless otherwise noted.


Sec. 685.200  [Amended]

    8. Section 685.200 is amended:
    A. In paragraph (a)(1)(iv)(A)(2), by removing the words ``when the 
borrower applied for a total and permanent disability discharge or''.
    B. In paragraph (a)(1)(iv)(B)(2), by removing the word 
``receives'', and adding, in its place, ``applies for''; and by adding, 
at the end of the first sentence, ``before receiving the new loan''.

[FR Doc. 01-20942 Filed 8-20-01; 8:45 am]
BILLING CODE 4000-01-P